Maldives, Republic of

Corporate - Other taxes

Last reviewed - 10 September 2023

Goods and services tax (GST)

The supply of goods and services in Maldives is subject to a tax (GST) at the rate of 8% (with effect from 1 January 2023) on the value of goods and services. The supply of tourism goods and services is subject to 16% tax (with effect from 1 January 2023) on the value of goods and services.

The recipient of goods and services supplied by a registered person is eligible for input tax credit in respect of the GST paid on the purchase of goods and service. The input tax can be adjusted with the output tax liability, and the net amount will be payable as GST to the Maldives Inland Revenue Authority (MIRA).

Customs duties / Import tariffs

Import of goods (other than prohibited goods) are subject to import duty as specified in the Customs tariff schedule. Classification of goods are based on the harmonised system that is published by the World Customs Organization, and the rate of import duty is levied according to article 7 of Maldives Export Import Law 31/79. The duty varies from 0% to 100% of value of goods.

The President of Maldives has the discretion, in the case of a special circumstance, to waive payment of import duty, or part of it, for items imported for the general benefit of the public.

Hence the goods, other than the 0% duty rated goods mentioned in article 7 of Maldives Export Import Law 31/79, can be imported duty-free after receiving an authorisation from the respective Ministry or Authority responsible for granting the duty exemption.

Social security contributions

The Maldives Pension Act provides for the operation of the retirement pension scheme in order to provide retirement pension to employees.

In accordance with Section 12 of the Pension Act, it is obligatory upon the employers and the employees who have not attained the age of pension to participate in the Retirement Pension Scheme of the Maldives. The employment contract shall provide for deduction of pension contribution by the employees.

The participation in the Retirement Pension Scheme by a Maldivian employee employed in the Maldives is mandatory irrespective of his/her participation in other pension scheme in or outside Maldives. However, participation by a foreign employee is, at present, voluntary.

Every person who is considered a participant of the Retirement Pension Scheme of the Maldives shall pay a minimum of 7% of the employee’s pensionable wage, and the employer shall also pay a minimum of 7% of the pensionable wage to the scheme.

Green Tax

Green Tax is levied on tourists who stay in tourist resorts, tourist hotels, and tourist vessels. It is levied at a flat rate of 6 United States dollars (USD) per day of stay. Maldivians and resident permit holders are not required to pay Green Tax even if they stay in resorts, hotels, and vessels.